President Asif Ali Zardari approved on Thursday the Finance Bill 2026-27, clearing the way for the federal budget for fiscal year 2026-27 to take effect from 1 July.
Sources said the presidentially signed Finance Bill will now be sent to the Printing Corporation for publication in the official gazette. The federal budget, with a total outlay exceeding Rs18 trillion, will come into force from 1 July 2026. Various fiscal measures included in the budget will also take effect from the same date.
Govt salaries, pensions up 7%
Under the Finance Bill, salaries and pensions of government employees have been increased by seven per cent. Changes to taxes and duties will likewise be implemented from 1 July.
The National Assembly Secretariat had forwarded the Finance Bill to the Presidency for approval a day earlier. President Asif Ali Zardari has now formally approved the Finance Bill 2026-27.
Budget development, fiscal programmes to begin under Finance Act 2026-27
Following the enforcement of the Finance Act 2026-27, the federal government will begin implementing development and fiscal programmes included in the budget to achieve targets set for the new financial year.
It is pertinent to note that the National Assembly approved the federal budget for fiscal year 2026-27 on Tuesday after completing a clause-by-clause review of the Finance Bill.
Rs18.77tn budget passed; PTI absent from final vote
The budget, with a total outlay of Rs18.771 trillion, was approved in the absence of members of the Pakistan Tehreek-e-Insaf (PTI), who were not present in the House at the time of the final vote.
Finance Minister Muhammad Aurangzeb presented the Finance Bill for approval. The House first approved a motion to consider the bill before proceeding with a clause-by-clause examination of the legislation.
During the proceedings, lawmakers debated several amendments. However, all opposition-sponsored amendments were rejected, while amendments supported by the government received approval.
Among the rejected proposals was an opposition amendment seeking to reduce the tax on vehicles up to 1,000cc from Rs20,000 to Rs10,000.
Amendments proposed by Jamiat Ulema-e-Islam member Alia Kamran, including changes to Clauses 4 and 6 of the bill, were also rejected by majority vote.
